After making these two samples, I also agree that the lug design needs to be defined and be more 3D. So it’s back to the original idea.
I have a bunch of scrap veg tan leather pieces in different weights, mostly 8-10oz thick. I’ll rummage through and see if I have anything in the 2-3oz. thickness.
I’m thinking the end result will be a contrasting leather lug pattern design color on a lighter leather bar wrap. This time using same color thread (brown) to the stitch the brown color lug design.

I’m using an industrial heavy duty sewing machine that doesn’t like to sew thin stuff. I’ll need to order thinner thread and the smallest gauge needle this machine can handle. Just to give you an example of the thickness of this 138 size thread and 22 size needle I’m using to stitch the lug design.
Auto leather upholstery is sewn with a medium duty upholstery sewing machine using a 69 size thread and a much thinner needle. This 138 sized thread is twice the thickness so it’s twice as strong.
So I’ll need a thinner needle to be able to get a tighter stitch per inch count. The stitch per inch count can only go so low before it starts to puch holes so close together that it’s basically cutting leather and not sewing.

The thinnest thread I’ve used on this heavy duty sewing machine has been 96 thread. I know I have some 96 thread laying around but it’s not in a color I’d like to use on this project. Guess I’ll use what I have to make another sample and see if the results improve.